Share and Follow
RESIDENTS across the US are concerned about the possible changes coming to the USPS.
The Postal Service could soon be merged into the Department of Commerce – or even privatized – under President Donald Trump’s latest proposal.
The president’s argument for a substantial overhaul is rooted in the USPS’s financial losses.
“We want to have a Post Office that works well and doesn’t lose massive amounts of money,” Trump said.
Despite generating $79 billion in revenue in 2023, the USPS still faced a loss of $6.5 billion.
In comparison, Congress only provided $50 million in subsidies that year, a far cry from the losses the service faces.
One key reason for the losses is that the USPS delivers to all communities, regardless of location, at the same cost.
If the agency is forced to turn a profit, rural areas will be hit hardest.
“The places where it’s most needed, because it’s most difficult to receive mail in other ways, are the places that would suffer the most directly,” Howard Schweber, a constitutional scholar at the University of Wisconsin Law School, told Spectrum News.
National Association of Letter Carriers President Brian Renfroe said urban residents may see minor price hikes, but rural customers could lose service entirely.
“If you live in Madison, you’d still get mail, maybe a little more expensive,” Renfroe said.
“If you live in a rural area, there would either be no access to delivery, or it would inevitably be more expensive.”
Renfroe’s union, which represents 300,000 active and retired letter carriers, has strongly opposed Trump’s privatization plan.
“We deliver to 160 million-plus addresses every single day, six days a week, same cost to everyone,” Renfroe said.
“Privatization would destroy that and hurt millions of Americans.”
Instead, Renfroe argues that Congress should focus on investments in modernizing the service.
Legal experts also warn that Trump may attempt to bypass Congress and enact changes via executive order.
Schweber noted that although Congress might not resist, such a move would likely end up in court.
What Privatization of USPS Means for Consumers
Reduced Access to Services: Privatizing USPS could limit service access, especially for rural areas, as private companies prioritize profit over universal service obligations.
Focus on Profitable Areas: Private companies would likely concentrate on urban areas where delivery is more efficient and profitable, potentially neglecting less profitable, rural regions.
Increased Inefficiency for Low-Profit Areas: Private delivery services may not be available in regions where delivering is not profitable, leading to gaps in service coverage.
Potential Rise in Costs: Privatized postal services could result in higher prices for consumers, as companies would aim to maximize profits, potentially leading to more expensive rates for mail and packages.
Decline in Service Reliability: Without the Postal Service’s commitment to a minimum service standard, consumers could experience more frequent delays or disruption in postal services.
Loss of Public Service Protections: Privatization could mean the erosion of worker protections and public accountability, as private companies focus on cost-cutting measures to increase their profits.
Source: NPR
“It would go to court. The outcome is wildly uncertain,” he stated.
The debate has divided lawmakers along party lines, especially in Wisconsin.
Rep. Mark Pocan, a Democrat from Madison, is staunchly against privatization, calling it “a really bad idea.”
Meanwhile, Rep. Scott Fitzgerald, a Republican from Juneau, has expressed a more cautious stance.
“There’s a lot of corporations in my district that rely on the Postal Service,” he said.
“We even have a manufacturer in Wisconsin that makes the blue mailboxes you see across the country.”
Fitzgerald said improvements are needed but stopped short of endorsing Trump’s plan.
“I’d love to hear a more elaborate plan to address some of those things,” he said.
As the debate rages on, it remains unclear what direction the future of the USPS will take.
